Debt Review in South Africa: How It Works and When to Consider It
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Keeping up with several debt repayments at once can become difficult, particularly when the cost of everyday essentials is already taking up a large part of your monthly income.
You might find yourself using one credit facility to pay another, skipping certain accounts so you can pay others, or reaching payday with very little money left after your debt repayments. If you’ve already started missing payments, it can also help to understand what happens if you don’t pay a loan in South Africa.
If this sounds familiar, taking out another loan isn’t necessarily the only option.
Debt review, also known as debt counselling, is a formal debt-relief process in South Africa designed to assist consumers who are over-indebted and struggling to meet their credit obligations.
Debt review is already being used by a significant number of South Africans. According to a September 2025 newsletter published by the National Credit Regulator (NCR), the president of the Debt Counsellors Association of South Africa reported that approximately 260,000 South Africans were undergoing debt review at the time.
The debt review process is provided for under Section 86 of the National Credit Act 34 of 2005. Consumers apply for debt review through a registered debt counsellor, who assesses their financial position and, where appropriate, recommends debt restructuring. According to the NCR, debt counselling can include an assessment of your income and expenses, budget advice, negotiations with credit providers and restructuring of your debt repayments.
And there is something new for MoneyHello users.
MoneyHello now works with partners that provide debt review services in South Africa. When you complete your details on MoneyHello, you may see a debt review option from one of our partners if it may be relevant to your financial situation.
MoneyHello is a comparison platform, not a debt counsellor or credit provider. Debt review services are provided by the relevant partner and are subject to the partner’s assessment, terms and applicable requirements.
Let’s look at what debt review actually means before deciding whether it’s something worth exploring.
Quick answer: Debt review is a formal process for South African consumers who are over-indebted. A registered debt counsellor assesses your finances and may propose a restructured repayment plan to your credit providers. You remain responsible for repaying your debts, and new credit is generally restricted while you are under debt review.
What Is Debt Review in South Africa?
Debt review is a formal process intended to help over-indebted consumers restructure their existing credit commitments.
Being over-indebted doesn’t simply mean having several loans or credit accounts. Broadly, it means you’re unable, or are likely to be unable, to meet your credit obligations as they become due. Looking at your existing repayments alongside your income and essential expenses can help you understand how much room you actually have in your budget. Our guide to personal loan affordability in South Africa explains how affordability works in more detail.
The NCR identifies warning signs such as:
- Your monthly expenses exceeding your income.
- Borrowing money to repay other debts.
- Using credit or an overdraft to cover necessities.
- Skipping some repayments so you can afford others.
Under debt review, a registered debt counsellor assesses your finances and may develop a proposed repayment arrangement based on what you can reasonably afford.
The debt counsellor can negotiate with your credit providers and seek to restructure the repayments. Depending on the process and whether agreement is reached, the restructuring may ultimately be made an order through the National Consumer Tribunal or a court.
Important: Debt review doesn’t make your debt disappear. You’re still responsible for repaying your debts under the restructured arrangement.
How Does Debt Review Work?
Although individual cases differ, the process generally follows several stages.
1. You apply for debt review
The first step is approaching an NCR-registered debt counsellor.
The NCR maintains a searchable register where consumers can check whether a debt counsellor is registered.
2. Your financial situation is assessed
The debt counsellor looks at your income, necessary living expenses and existing credit commitments.
The purpose is to determine whether you’re over-indebted and how much you can realistically afford towards your debts.
3. Your creditors are notified
The formal debt review process includes prescribed notifications to credit providers and credit bureaus. The NCR lists Form 16 as the application for debt review, Form 17.1 as the notification that an application has been received, and Form 17.2 as the notification of rejection or proposed restructuring.
4. A repayment proposal may be developed
If you’re found to be over-indebted, your debt counsellor can propose restructuring your debt obligations.
This may involve negotiating revised repayments with your credit providers and arranging a repayment structure that reflects your financial circumstances.
5. You continue making payments
Debt review isn’t a payment holiday.
You need to continue making the required payments under the applicable arrangement. Interest also doesn’t automatically stop simply because you’ve entered debt counselling.
Can You Take Out a Loan While Under Debt Review?
Generally, you cannot take out new credit while you are under debt review.
Under the National Credit Act, a consumer who has applied for debt review may not enter into further credit agreements, except in limited circumstances provided for by the Act, until the debt review process has been resolved or the relevant obligations have been fulfilled.
This means debt review should not be treated as something you can simply use alongside taking out another personal loan.
If you’re already struggling to meet existing repayments, adding new credit may make your financial situation more difficult. In these circumstances, discussing your situation with a registered debt counsellor may be more appropriate.
What Are the Potential Benefits of Debt Review?
Debt review can offer several potential advantages for an over-indebted consumer.
For example, the process can provide:
- A structured approach to dealing with multiple debts.
- An assessment of what you can realistically afford.
- Negotiations with credit providers.
- Restructured repayments where applicable.
- A clearer path towards settling existing debt.
There are also statutory protections associated with the process, although the exact protection depends on the stage and circumstances of the debt-review proceedings.
What Are the Disadvantages of Debt Review?
Debt review can provide a structured way to deal with serious debt problems, but it also comes with important restrictions and costs. Before entering the process, make sure you understand what debt review will mean for your finances over the months or years ahead.
1. You Generally Cannot Take Out New Credit
One of the biggest restrictions is that you generally cannot take on additional credit while you are under debt review.
Under Section 88 of the National Credit Act, a consumer who has applied for debt review generally may not enter into further credit agreements, other than a consolidation agreement as provided for by the Act, until the relevant statutory requirements have been met.
This can affect your ability to apply for products such as:
- Personal loans
- Credit cards
- Store accounts
- Vehicle finance
- Other new credit agreements
For this reason, debt review should not be viewed as a way to reduce existing repayments so that you can borrow again. Its purpose is to help address existing over-indebtedness.
2. Your Debt Does Not Disappear
Debt review is not debt cancellation.
You remain responsible for repaying your debts. The aim is to restructure your obligations into a repayment arrangement that takes your financial circumstances into account.
Depending on the arrangement, repayment terms may change. This can make monthly payments more manageable, but it may also mean that you remain in repayment for longer.
Before agreeing to a restructuring proposal, ask your debt counsellor to explain:
- Your proposed monthly payment
- How long repayment is expected to take
- The interest and fees that may continue to apply
- The total amount you are expected to repay
Understanding the complete repayment plan is important before committing to the process.
3. Interest Does Not Automatically Stop
Entering debt review does not automatically freeze the interest charged on your existing debts.
Your repayment arrangement may involve negotiations with credit providers, but you should not assume that interest or other charges will simply disappear.
This is why it is important to review the actual restructuring proposal rather than focusing only on whether your new monthly repayment is lower.
A smaller monthly payment may provide immediate breathing room, but a longer repayment period can affect how much you ultimately pay.
If you’re unsure how interest affects the overall cost of borrowing, our guide to personal loan interest rates in South Africa explains how rates work and why the total repayment amount matters.
4. Debt Review Comes With Fees
Debt counselling is not necessarily a free service.
The NCR publishes debt counselling fee guidelines covering different stages of the process. These include an application fee, possible restructuring fees, after-care fees and, in some circumstances, legal costs.
The exact costs applicable to your case should be explained before you proceed.
Ask your debt counsellor for a clear breakdown of:
- Upfront fees
- Restructuring fees
- Monthly after-care fees
- Legal fees, where applicable
- Any other costs connected with your case
The NCR’s fee guidelines also state that applicable fees and debt counselling services should be set out in an addendum to Form 16 and explained to the consumer.
5. The Process Can Take Time
Debt review is usually not a quick fix.
How long you remain under debt review depends on factors such as:
- How much debt you owe
- How much you can afford to repay each month
- The terms agreed with your credit providers
- Whether your financial circumstances change
- Whether you make all required payments consistently
For consumers with significant debt, the process may continue for several years.
This is another reason to think of debt review as a long-term debt-management process, rather than a temporary reduction in monthly payments.
6. Debt Review Is Reflected on Your Credit Profile
Once the formal debt counselling process begins, relevant information is communicated to credit providers and credit bureaus as part of the process.
This is connected to the restriction on taking additional credit while under debt review.
However, being under debt review should not simply be described as being “blacklisted”. Debt review is a specific legal process under the National Credit Act, with procedures governing how a consumer enters and completes it.
Once the relevant requirements have been satisfied, the debt counsellor can issue a clearance certificate where legally applicable. The NCR also provides specific guidance on the filing of Form 19 clearance certificates.
7. You Need to Keep Making Your Agreed Payments
Entering debt review does not mean that you can stop paying your creditors.
You need to keep up with the payments required under the applicable arrangement.
Missing payments can create further problems and may affect the protections available through the debt review process. If your financial circumstances change and you are struggling to maintain your repayment arrangement, contact your debt counsellor rather than simply stopping payments.
Is Debt Review Worth It?
There is no single answer that applies to everyone.
For someone who is genuinely over-indebted and consistently unable to meet existing credit commitments, debt review may provide a structured route for dealing with those debts.
For someone experiencing only a temporary cash-flow problem, however, a formal debt review process may not necessarily be appropriate.
Before proceeding, make sure you understand:
- Why the debt counsellor believes you are over-indebted
- What your proposed monthly repayment will be
- How long the repayment process may take
- What fees you will pay
- What happens to your existing credit agreements
- What restrictions will apply while you are under debt review
Most importantly, use an NCR-registered debt counsellor. The NCR maintains a public register that consumers can use to check a debt counsellor’s registration details.
How Do You Know If Debt Review May Be Right for You?
Statistics South Africa, citing the DebtBusters Q4 2025 Debt Index, reported that consumers who applied for debt counselling during the quarter needed an average of 71% of their take-home pay to service their debt. Among these consumers, 96% had a personal loan and 59% had a one-month loan.
But having debt doesn’t automatically mean that you need debt review.
Many South Africans have personal loans, vehicle finance, credit cards or other credit agreements that they are able to manage within their monthly budgets. Debt review is specifically designed for consumers who are over-indebted and struggling to meet their financial obligations.
According to the National Credit Regulator (NCR), possible signs of over-indebtedness include having monthly expenses that exceed your income, borrowing money to repay other debts, using credit to pay for necessities, and skipping payments on some accounts so that you can pay others.
You may want to speak to a registered debt counsellor if you regularly experience situations such as:
- Falling behind on loan, credit card or other debt repayments
- Borrowing money to repay existing debts
- Using an overdraft or credit card to pay for groceries, school fees or other essentials
- Choosing which accounts to pay because you can’t afford all of them
- Having very little money left for essential living expenses after making debt repayments
- Receiving increasing pressure from creditors because you are struggling to keep up with payments
These signs don’t automatically mean that debt review is the right solution for you. A registered debt counsellor will need to assess your income, expenses and credit obligations to determine whether you are over-indebted.
Temporary Cash-Flow Problem vs Over-Indebtedness
It’s also important to distinguish between a temporary financial setback and a more persistent debt problem.
For example, imagine your car suddenly needs a R4,000 repair shortly before payday. You normally manage your monthly repayments comfortably, but this unexpected expense puts pressure on your budget for one month.
That is different from regularly reaching payday unable to cover your existing debt repayments and essential living expenses. If you’re experiencing a short-term month-end squeeze rather than persistent over-indebtedness, these practical ways to survive until payday may help you reduce expenses without immediately taking on additional debt.
| Temporary Financial Pressure | Possible Signs of Over-Indebtedness |
|---|---|
| One unexpected expense | Regularly unable to meet repayments |
| Usually manage monthly bills | Frequently fall behind on accounts |
| Short-term gap in your budget | Borrow to repay other debts |
| Savings or budgeting may help | Credit is regularly used for essentials |
| Finances recover after the setback | Debt pressure continues month after month |
If you’re unsure which situation applies to you, speaking to an NCR-registered debt counsellor can help you understand your financial position before you make a decision.
The NCR maintains a public register of registered debt counsellors, which consumers can use to check a counsellor’s name and NCR registration number. The NCR states that debt counselling may only be conducted by a debt counsellor registered with the regulator.
MoneyHello Now Works With Debt Review Partners
If you’re struggling with existing debt, taking out another loan may not always address the underlying problem.
That’s why MoneyHello now works with partners that provide debt review services in South Africa.
When you complete your details on MoneyHello, you may see a debt review option from one of our partners if it may be relevant to your financial circumstances.
This means MoneyHello can help users explore more than one type of financial solution. Depending on your situation, the options available to you may differ.
MoneyHello is a comparison platform, not a debt counsellor. Debt review services are provided by the relevant partner and are subject to the partner’s assessment, terms and eligibility requirements.
If debt review is presented as an option, take time to understand how the process works, what it will cost and what your responsibilities will be before proceeding. The NCR specifically advises consumers to ensure that the process, fees, implications, rights and responsibilities are explained upfront.
Looking for Help With Existing Debt?
If your current debt repayments are becoming difficult to manage, you can complete your details on MoneyHello and explore the options available to you.
Depending on your circumstances, these may include a debt review service from one of our partners.
How to Choose a Debt Review Service in South Africa
Choosing a debt review provider shouldn’t simply come down to which company appears first in an online search or promises the lowest monthly repayment.
Debt counselling is regulated in South Africa, so one of the most important checks is whether the individual debt counsellor is registered with the NCR. It’s also important to recognise warning signs before sharing personal or financial information. See our guide on how to avoid loan scams in South Africa.
The NCR specifically notes that debt counsellors are registered as individuals. Consumers should know the debt counsellor’s name, place of practice and NCR registration number, even when the counsellor operates under a business or trading name.
Before proceeding, consider the following.
Check the Debt Counsellor’s NCR Registration
Don’t rely only on a logo or a claim that a business is “NCR registered”.
Ask for the debt counsellor’s NCR registration number and verify it using the official NCR Debt Counsellor Register.
Ask for All Fees to Be Explained
Before agreeing to the service, make sure you understand what you’ll be charged and when.
The NCR publishes Debt Counselling Fee Guidelines, which cover fees associated with different stages of the debt counselling process.
Don’t focus only on the proposed monthly repayment. Ask what the overall process will cost as well.
Understand How Payments Will Work
Ask the debt counsellor to explain exactly how payments to your credit providers will be handled.
The NCR advises that consumers should not pay money intended for credit providers directly to the debt counsellor. Instead, payments are distributed through a Payment Distribution Agent (PDA).
Ask What Happens If Your Situation Changes
Your finances may look different a year from now.
You might receive a salary increase, lose income or be able to settle certain debts earlier than expected.
Ask what happens in these situations and how they could affect your repayment arrangement.
Be Careful With Debt Review Promises That Sound Too Good to Be True
Be cautious of advertising that suggests debt review will:
- Instantly eliminate your debts
- Automatically stop all interest
- Allow you to continue taking out new loans
- Remove debt review from your credit profile immediately
- Cancel your debts without repayment
Debt review is debt counselling, not debt cancellation. The NCR states that consumers remain responsible for repaying their debts while under debt counselling. It also confirms that consumers cannot obtain further credit while under the process and that interest does not automatically stop.
Before signing anything, make sure you understand exactly what you’re agreeing to and verify the debt counsellor through the NCR.
Final Thoughts
Debt review can provide a structured way for over-indebted South Africans to deal with existing credit commitments, but it is a significant financial decision with costs, restrictions and responsibilities.
Before entering debt review, make sure you understand the proposed repayment arrangement, the fees involved and how the process will affect your ability to access new credit. Always check that the debt counsellor you’re dealing with is registered with the NCR.
If you’re struggling with existing repayments, taking on another loan may not always be the appropriate solution. MoneyHello now works with partners that provide debt review services, giving eligible users another option to explore based on their financial circumstances.
Frequently Asked Questions About Debt Review in South Africa
What is debt review in South Africa?
Debt review, also known as debt counselling, is a formal process under the National Credit Act designed to assist consumers who are over-indebted.
A registered debt counsellor assesses your income, essential living expenses and existing credit commitments. If you’re found to be over-indebted, the counsellor may propose restructuring your repayments based on what you can reasonably afford.
Debt review does not cancel your debts. You remain responsible for repaying them.
You can learn more about debt counselling from the National Credit Regulator (NCR).
How do I know if I qualify for debt review?
Having several loans or credit accounts doesn’t automatically mean you qualify for debt review.
A registered debt counsellor will assess your financial circumstances to determine whether you are over-indebted. Signs that you may be experiencing over-indebtedness can include regularly falling behind on repayments, borrowing to repay other debts, using credit for basic necessities or being unable to cover your normal living expenses after paying your debts.
Can I get a loan while under debt review?
Generally, you cannot take out new credit while you are under debt review.
The National Credit Act restricts consumers who have applied for debt review from entering into further credit agreements, apart from limited exceptions provided for by the Act, until the relevant requirements have been met.
Debt review should therefore not be viewed as a way to reduce existing repayments so that you can take out another loan.
Does debt review cancel your debt?
No. Debt review does not erase or cancel your existing debts.
Its purpose is to help eligible over-indebted consumers deal with their existing credit obligations through a structured process. You remain responsible for making the required repayments.
Does interest stop when you go under debt review?
No. Interest does not automatically stop simply because you enter debt review.
The terms of individual credit agreements and any restructuring arrangement will affect the amounts you ultimately repay. Before proceeding, ask your debt counsellor to explain your proposed repayments, applicable interest and fees, and how long repayment is expected to take.
How long does debt review take in South Africa?
There is no single timeframe that applies to everyone.
The length of the process depends on factors such as how much you owe, how much you can afford to repay each month, the terms of the restructuring arrangement and whether you maintain the required payments.
For some consumers, debt review can continue for several years.
Does debt review affect your credit record?
When you enter the formal debt review process, relevant information is communicated to credit providers and credit bureaus.
This is connected to the restrictions on obtaining further credit while you are under debt review. However, debt review is a specific legal process and should not simply be described as being “blacklisted”.
Once the applicable legal requirements have been satisfied, a clearance certificate may be issued. The NCR provides guidance on the Form 19 clearance certificate process.
Can I cancel debt review?
Leaving debt review is not always as simple as asking for your name to be removed.
The process and requirements depend on the stage of your debt review and your individual circumstances. Be particularly cautious of companies promising to “remove debt review” quickly in exchange for an upfront payment.
The NCR has warned consumers about misleading debt review removal practices. If you want to leave or complete debt review, speak to your registered debt counsellor and make sure you understand the legal process that applies to your situation.
How much does debt review cost?
Debt counselling can involve fees at different stages of the process.
These may include application, restructuring and after-care fees, as well as legal costs where applicable. Your debt counsellor should explain the applicable costs before you proceed.
The NCR publishes Debt Counselling Fee Guidelines that consumers can consult for more information.
How can I check if a debt counsellor is registered with the NCR?
You can use the official NCR Register of Debt Counsellors.
Ask for the debt counsellor’s name and NCR registration number and check these details before proceeding with a debt review service.
What happens when I finish debt review?
Once the applicable requirements have been satisfied, a debt counsellor may issue a clearance certificate (Form 19) where the legal requirements for clearance have been met.
The clearance process is important because it enables the relevant debt review information to be updated with credit bureaus in accordance with the applicable process.
If you’re approaching the end of debt review, ask your debt counsellor to explain exactly what needs to happen before your clearance certificate can be issued.
Is debt review the same as debt consolidation?
No.
Debt review is a regulated debt counselling process for over-indebted consumers. Debt consolidation generally involves combining or refinancing debts, which may involve obtaining new credit.
The two approaches have different requirements, consequences and costs. Someone already under debt review is also generally restricted from obtaining new credit.
Is debt review a good idea if I’m struggling with repayments?
That depends on your individual financial circumstances.
Debt review is intended for consumers who are over-indebted, rather than someone dealing with a single unexpected expense or temporary shortage of money.
If you’re consistently unable to meet your existing debt repayments, a registered debt counsellor can assess your finances and explain whether debt review may be appropriate.
